Banking, investment and insurance : Future trends

The globalisation of markets

Over the last couple of decades the progress of the globalisation of the world’s markets has been continuous. Even though the recession may have slowed this process down over the last few years, it is still developing at a reduced rate. This globalisation is due to the increase in international trade, and the capital markets becoming self-reliant but also responsible for each other. With barriers and borders within markets and between countries reduced, opportunities for work are likely to increase.

Growth of emerging economies

The growth and success of emerging markets in Latin America, Eastern Europe and Asia are predicted to continue at a faster rate than the economies of advanced countries. This growth will bring increased economic influence for the most politically stable and larger emerging markets and also greater opportunities for organisations to invest in these markets. Consequently, there is likely to be an increase in the number of opportunities for graduates to work in countries such as Brazil, Russia, India and China. For more information see opportunities abroad.

Technology

Advances in technology have changed the way the industry operates. Technology will continue to play a key role in the sector and the need for graduates with specialist IT knowledge is expected to increase. However, banks are now taking on contractors rather than permanent IT staff to undertake big technology projects. Systems and IT resources are always evolving and developing and the majority of this IT work is in risk, change management, information security and front office trading systems.

The recession has had an impact on IT strategy within the industry as external regulators have been brought in to monitor how businesses operate. This means that IT professionals will have to work closely in the future with internal legal and corporate affairs teams and external regulators to help prevent financial crime. This also relates to the increased use of internet banking.

Risk management

Due to the recession, the risk management industry underwent significant changes. Audit committees and executives had to reassess their risk management processes. As a result, there is an increase in the demand for risk management professionals and the development of new risk management platforms. This trend ties in with the developments in technology and the prevention of financial crime.

The changing face of insurance

There has been a large expansion in the services provided by insurance companies, with many of the larger providers now offering a range of services. Insurance companies, building societies, banks and supermarkets increasingly find themselves battling for the same financial services markets. In order to survive this trend, it is predicted that in the future there will be few companies or brokers left dealing solely in insurance.

Demographics

With an ageing population in the UK, it is predicted that the labour market will continue to grow slowly. This is in comparison with the demographic profile of countries with an emerging market and a younger population, resulting in an influx of new workers. The consequent concern over the continuing pensions gap means that pensions, retirement planning and healthcare insurance are likely to become growth areas in the insurance industry.